PUDUCHERRY: In a bid to phase out old vehicles and reduce air pollution, the Puducherry government has come out with a vehicle scrapping policy which is set to be implemented from April 1 and will be valid for five years.
Under the policy, vehicles owned by Central and state governments and their departments will not have their certificate of registration renewed after 15 years, except for special purpose vehicles utilized for defence operations and maintaining law and order.
Transport Department officials have also disclosed plans to establish Registered Vehicles Scrapping Facilities (RVSF) across the union territory and these facilities will be responsible for dismantling and scrapping operations.
The private vehicle owners participating in the scheme will be offered a tax exemption of 25% for non-transport vehicles and 15% for transport vehicles. Upon surrendering their vehicles to RVSFs, owners will receive a certificate of deposit, which can be used to avail of the tax benefit for five years.
The government has allocated Rs 2 crore for incentivizing vehicle owners in the first year. The owners will also receive scrap value equivalent to 4-6% of the vehicle’s ex-showroom price.